Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. Production budget: The ending finished goods inventory is always 25% of next months unit sales. Direct labor budget: The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18. Manufacturing overhead budget: The variable overhead rate is $2.00 per direct labor-hour. The total fixed manufacturing overhead is $70,000, which includes $12,000 of depreciation. What is the total budgeted manufacturing overhead cost for July?

Multiple Choice

• $123,250

• $111,250

• $135,250

• $127,250